HP to quit supplying printers to Dell

HP, on Tuesday morning, notified Dell that it will stop supplying printers, cameras and scanners to the No. 2 PC Maker (HP is now No. 1), citing Dell's intention to enter the printer business.

Diane Roncal, a HP spokeswoman said "The basis for the relationship is no longer valid given the company's intent to sell Dell-branded printers". Roncal continued to say that Dell's business represented an "insignificant" portion of HP's printing and imaging business, equal to only a few days' sales per year. Roncal also said that HP is in discussions with other resellers to pick up the sales.

Dell currently offers HP's printers, scanners and digital cameras as well as its Jornada handhelds for sale on the Dell Web site. It has been widely speculated that Dell is planning to enter the printer business, although the company has not fully laid out its plans.

HP, the world's largest printer maker, and Dell, now the No. 2 PC maker behind HP, once enjoyed a fairly close relationship on printers. Dell was one of HP's largest sales outlets, according to sources. HP resellers often expressed dismay over the relationship because assisting Dell, they said, potentially cut into their own business.

A Dell representative was not immediately available for comment.

News source: CNet News

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